4 ms·

that's about 0.6% of the market cap of bitcoin

dlp211 9y ago
And a whole lot of trust.
bufferoverflow 9y ago
You can't compare money and market cap directly. Millions of dollars can move the market cap by billions. It's because the books on exchanges are relatively thin.
barrkel 9y ago
Price is set by marginal transactions, not the amount of money converted over time.
jack_pp 9y ago
"market cap" is a very bad representation of the overall value which is impossible to actually estimate. try selling 600 million worth of btc and see how that cap changes.
- cloakandswagger 9y ago
  Dump large amounts of ANY asset and it will crash. It's only crypto that gets accused of having a "fake" market cap though.
  - standupstandup 9y ago
    It's only crypto that uses the term "market cap" to mean "outstanding crypto-tokens * price". That isn't what the term means in conventional finance. It's normally applied to shares.
- mrb 9y ago
  5 BILLION dollars worth of bitcoins are sold every day. The trading volume is higher and the orderbooks are deeper than you think...
  - ActsJuvenile 9y ago
    Google "Wash Trading"
    - mrb 9y ago
      Doesn't work in crypto markets. Taker fees are typically > 0.20%, with the notable exception of BitMex.
      - 55555 9y ago
        Those who are downvoting the parent, please explain why? He is correct. Is the assumption here that the exchanges themselves are wash trading and not charging themselves fees? Seems possible. But otherwise wash trading is very expensive due to the maker/taker fees.
      - joosters 9y ago
        There is plenty of evidence of wash trading occurring on Bitfinex and other exchanges - there are also many accusations that the exchanges themselves wash trade, to pump up their own volumes. They don't need to pay their own fees!
        mrb 9y ago
        Taker fees are 0.1-0.2% on Bitfinex. Wash trading would be too expensive. Where is the evidence the exchange itself is doing it?
      - reefoctopus 9y ago
        Korean exchanges are 0 fee.
        mrb 9y ago
        Koreans account only for ~7% of the 5 billion USD/day.
      - ActsJuvenile 9y ago

And a whole lot of trust.

You can't compare money and market cap directly. Millions of dollars can move the market cap by billions. It's because the books on exchanges are relatively thin.

barrkel 9y ago

Price is set by marginal transactions, not the amount of money converted over time.

jack_pp 9y ago

"market cap" is a very bad representation of the overall value which is impossible to actually estimate. try selling 600 million worth of btc and see how that cap changes.

cloakandswagger 9y ago
Dump large amounts of ANY asset and it will crash. It's only crypto that gets accused of having a "fake" market cap though.
- standupstandup 9y ago
  It's only crypto that uses the term "market cap" to mean "outstanding crypto-tokens * price". That isn't what the term means in conventional finance. It's normally applied to shares.
mrb 9y ago
5 BILLION dollars worth of bitcoins are sold every day. The trading volume is higher and the orderbooks are deeper than you think...
- ActsJuvenile 9y ago
  Google "Wash Trading"
  - mrb 9y ago
    Doesn't work in crypto markets. Taker fees are typically > 0.20%, with the notable exception of BitMex.
    - 55555 9y ago
      Those who are downvoting the parent, please explain why? He is correct. Is the assumption here that the exchanges themselves are wash trading and not charging themselves fees? Seems possible. But otherwise wash trading is very expensive due to the maker/taker fees.
    - joosters 9y ago
      There is plenty of evidence of wash trading occurring on Bitfinex and other exchanges - there are also many accusations that the exchanges themselves wash trade, to pump up their own volumes. They don't need to pay their own fees!
      - mrb 9y ago
        Taker fees are 0.1-0.2% on Bitfinex. Wash trading would be too expensive. Where is the evidence the exchange itself is doing it?
    - reefoctopus 9y ago
      Korean exchanges are 0 fee.
      - mrb 9y ago
        Koreans account only for ~7% of the 5 billion USD/day.
    - ActsJuvenile 9y ago